Pr. Commissioner of Income tax-5 vs. M/s Flagstone Underwriting Support services [India] pvt.ltd

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ITTA/30/2015HC TelanganaHBHC01014453201515 June 2015Bench: CHALLA KODANDA RAM,G.CHANDRAIAH3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the issue raised in the appeal was squarely covered by the judgment of the Special Bench of the Chennai Tribunal in ITO v. Sak Soft Limited. The Court noted that it had previously dismissed a similar appeal (I.T.T.A. No.257 of 2013) following the Special Bench's order in Sak Soft. Therefore, the High Court found no illegality or infirmity in the ITAT's order and did not consider the appeal required to be admitted. The appeal was accordingly dismissed. No specific finding was given on the merits of the substantial question of law, as the appeal was dismissed on the ground of being covered by precedent.

What were the facts?

The Revenue filed an appeal before the High Court against an order of the Income Tax Appellate Tribunal (ITAT) dated 19.11.2014, pertaining to assessment year 2008-09. The appeal challenged the ITAT's decision to exclude communication charges from both export turnover and total turnover for the purpose of computing deduction under Section 10A of the Income Tax Act. The High Court was considering whether to admit the appeal based on a substantial question of law raised by the Revenue.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal (ITAT) was justified in law in holding that communication charges should be excluded from both export turnover as well as total turnover for the purpose of computing deduction under Section 10A, without appreciating that there is no provision in the Act to reduce the same from Total Turnover? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue argued that the ITAT erred in excluding communication charges from total turnover, as there is no specific provision in the Income Tax Act allowing for such a reduction from total turnover when computing deduction under Section 10A. The Revenue relied on the substantial question of law framed in its appeal.

Which sections of the Income-tax Act were involved?

Section 10A

AI-generated summary — verify with the full judgment below

THE HON’BLE SRI JUSTICE G. CHANDRAIAH AND THE HON’BLE SRI JUSTICE CHALLA KODANDA RAM I.T.T.A. No. 30 of 2015 ORDER:- (per Hon’ble Sri Justice G. Chandraiah)

This appeal, at the instance of Revenue, is filed against the order of the Tribunal dated 19.11.2014, I.T.A. No.1018/Hyd/2013 for the assessment year 2008-09. The appeal is sought to be admitted on the following substantial question of law: “i) Whether on the facts and in the circumstances of the case the Hon’ble Income Tax Appellate Tribunal (ITAT) was justified in law in holding that communication charges should be excluded from both export turnover as well as total turnover for the purpose of computing deduction u/s 10A without appreciating that there is no provision in the Act to reduce the same from Total Turnover?” 2. When the matter is taken up for hearing, learned Standing Counsel for the Department submits that the issue is covered by the judgment of this Court in I.T.T.A No.257 of 2013. 3. The issue raised in this appeal is squarely covered by the judgment of the Special bench of Chennai Tribunal in ITO v. Sak Soft Limited.[1] As a matter of fact, this Court dismissed I.T.T.A. No.257 of 2013, following the Special Bench order of the chennai Tribunal in Sak Soft (1 supra).

4.

In that view of the matter, we do not consider this appeal is required to be admitted as there is no illegality or infirmity in the order

of the Tribunal. 5. The appeal is, accordingly, dismissed. No costs. Miscellaneous petitions, if any pending in this appeal, shall stand closed.

______________________ G. CHANDRAIAH, J

_____________________________ CHALLA KODANDA RAM, J 15th June, 2015 ksm

THE HON’BLE SRI JUSTICE G. CHANDRAIAH AND THE HON’BLE SRI JUSTICE CHALLA KODANDA RAM

I.T.T.A. No. 30 of 2015

15th June, 2015

ksm [1] 2009-TIOL-187-ITAT-Mad-SB

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